USA Hospitality Market Report, January 2024
By Paul Breslin CHA, CHE, ISHC on January 20, 2024
As we navigate through a post-pandemic world, the hospitality industry stands at a crossroads of opportunity and adaptation. Our Market Report offers a panoramic view of this new landscape, capturing the pulse of recovery, investment shifts, and trends that are defining the future of hotels and travel. In this executive summary, we’ve distilled key insights that not only reflect the resilience of the sector but also signal the strategic directions that can propel growth and innovation.
- The hotel industry is experiencing a notable recovery post-pandemic, with demands and Revenue Per Available Room (RevPAR) expected to surpass pre-pandemic levels. A particular surge in wellness travel and business travel has been observed, alongside an increase in meeting and event budgets.
- Weekly occupancy rates have shown resilience, with an incremental rise in Average Daily Rate (ADR) contributing to a slight increase in RevPAR, despite a slight decline in occupancy compared to the previous year.
- Investment focus has pivoted towards acquisitions instead of building new hotels, with select-service and extended-stay hotels drawing significant interest due to their robust RevPAR recovery and operational efficiencies.
- Wyndham stands as the preeminent brand in the US hotel landscape, while Texas remains the epicenter for number of hotels.
- Investor sentiment is cautious amidst escalating interest rates and inflation, heightening the risk of loan defaults and pricing challenges, particularly for smaller lenders.
- The strategic interplay of location selection, operational efficiency, and brand alignment continues to be pivotal in driving hotel performance and investor returns.